Which of the following observations concerning pollution rights is incorrect?
A)It would not allow firms to move into an area that is already as polluted as allowed by EPA standards.
B)It allows the greatest value to be generated with a given amount of pollution.
C)The rights are private property and can be sold.
D)Each polluter is motivated to discover and use the cheapest way to reduce pollution.

Question

Which of the following observations concerning pollution rights is incorrect?
A)​It would not allow firms to move into an area that is already as polluted as allowed by EPA standards.
B)​It allows the greatest value to be generated with a given amount of pollution.
C)​The rights are private property and can be sold.
D)​Each polluter is motivated to discover and use the cheapest way to reduce pollution.

Quizplus · Accepted Answer

Pollution rights would actually incentivize firms to move into areas with higher pollution levels but lower costs of reductions, as they would have more potential to generate revenue from selling their excess pollution rights.

Which of the Following Observations Concerning Pollution Rights Is Incorrect